Monday, May 26, 2014

Combo Technical Analysis: Reliance and Century Textile

Reliance Industries
My last 2 articles on Reliance have lead to a profit of nearly 20%. Now The stock is making a bearish Engulfing and Negative reversal on RSI
Century Textile
From the previous article on Century Textile the stock had made 34% Profit. Now the stock is making a bearish engulfing and can show a reversal after a downside breakout 
Click here

Analysis on Request: Gitanjali Gems Ltd

Gitanjali Gems on a Glimpse:
Most of all companies who are into Gold business have been badly hit by the Raghuram Rajan's measure to control deficit last year. Which eventually affected the stocks like Titan, Gitanjali PCJ, TBZ etc. But the most important fact for the observation here is Gitanjali have Rs.3000cr as Debt and there net profit is growing year by year. The stock need to recover from the Raghuram's policy. Along with it, the end of Gold Rush saga will also bring a huge impact on companies operational activities

Recently, RBI eased gold import rules which benefited various people like jewelers, traders, Bullion dealers and banks. But, Raghuram imposed many other  restriction on gold apart import restriction like transaction tax and curbs on ETF. The underlying demand for gold is unchanged and company have potential sales opportunities. I am expecting munch more friendly measure so that it benefit companies like Gitanjali Gems.

Technical Analysis
Technically this stock is strong and recently shown a major crossover of 100DMA & 200DMA. Currently the stock is in consolidation. Untill and unless I see the reversal it is unclear to comment on it. 

Thursday, May 22, 2014

Glenmark Pharma: An Fundamental+ Technical View

The stock is a buzz in every fundamental analyst perspective. And I personally had a look at this industry. And the company is performing good in Indian market majorly capturing heat, breathing, anti-infection and skin segment. All segments are performing a single digit growth (1-5%) yoy apart skin(which is giving +8% growth). I feel the stock had consolidated more than its value, after making a yearly high in recent days.

The stock can currently give a 14% return within few months. And the stock had bullish crossover of (100 & 200DMA). It has also withstood and sharp correction recently, currently the stock has shown a reversal at its support i.e @510. As per my analysis the stock is potentially good in Indian market. And 550 &610 can stand a resistance. This stock can surly be a multibagger if its quarterly & yearly performance is showing the same growth. 

Friday, May 2, 2014

Technical Analysis on Request: DLF Part-2

The stocks like DLF are always volatile and need a keen understanding for trading. Currently the stock is making a bullish divergence and finding support. No reversal is seen

Kindly note: I am a MBA student. Not a certified adviser and I suggest my views on stocks and commodities never recommend for a buy/sell.

Thursday, May 1, 2014

Technical Analysis on Request: Aurobindo Pharma

No one are bearish on  Aurobindo Pharma. But, technically I am able to see a rising wedge in this stock along with it. I am also able to see a bearish divergence in this stock

 The stock will be bearish after an bearish breakout in the trend

Technical Analysis on Request: Reliance, Why trader are bullish on Reliance?

From last few days Reliance is a buzz in the mouth of every investor. In my last article I had only given my views on Reliance. Today, I will let everyone know why traders are bullish on Reliance?.
Click here to read my last article 

 As per the current scenario the stock has given a bearish breakout and the stock has started correcting as you can see in the chart below

 "Inside Funda"
From last April 1st 2014 both Relaince and 13 Urea companies have failed to settle the price of natural gas supply rate and the issue had knocked the door of our oil minister Veerappa Moily. And the issue of keeping gas price below half of the global price is the main funda behind. So, Moily Had given a press relies saying

"When the proposal came to me, I rightly ordered that after the model code of conduct is lifted, (the) price may be announced for the quarter July-September and also for the quarter April-June, as per the approved guidelines by the cabinet,"- by Mr Moily 

What is the problem?

RIL and urea companies failed to settle the key terms of gas supply from 1 April on expiry of the five-year contracts that priced gas from the eastern offshore KG-D6 fields at $4.205 per million British thermal unit (mBtu). While RIL agreed to continue supplies in the interim period, the dispute pertained to the rate at which consumers should provide payment guarantees—the expired price or $8.34, which would have been applicable from 1 April had the Election Commission not postponed implementation of the Rangarajan Committee formula till completion of the general election.

"Moily's Game Play"

Reliance and Mr.Moily is are under a pressure of Election and Moily had informed that he will implement the price with a special formula
But, India's main opposition "Bharatiya Janata Party (BJP), widely expected to win the most seats in the election and oust Moily's Congress party-led government, has said it would review the gas pricing formula if elected. " (as per a National Newspaper)

Conclusion: More than Technicals, I trust to keep a keen eye on News and information because that will drive this stock.

Source:, Economic Times, NDTV